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Who Is on a Board of Directors

In: Business and Management

Submitted By mountainmomma83
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Who is on the Board of Directors

A corporation consists of low-level management, middle management, top management, a board of directors, and the shareholders. The board of directors oversee the top management (which oversee the middle and low-level management) with the agreement of the shareholders. According to Wheelen & Hunger, the board of directors are responsible for setting the corporate strategy, overall direction, mission, or vision; the hiring and firing of the CEO and top management; the controlling, monitoring, or supervising of top management; reviewing and approving the use of resources; and caring for shareholder interests (2012, pg. 45).

To become a board member, you should have experience in the business field or a specific function within the organization. There are inside directors which are usually top management or executives of the organization. However, outside directors can also gain seats on the board; these board members can be on the board of another organization, but they are not employed under the board's corporation, they are high level executives of other corporations.

Having the right number of inside and outside directors on the board depends on the side you are asking. Some believe that having to many “insiders” on the board may start to drive the corporation in the wrong direction, in the direction of personal gains. On the other hand, some believe having o many outsiders on the board could be both good and bad. Wheelen & Hunger state that outsiders ten to be more objective and critical of corporate activities.

Some board members can serve on as many as three boards at one time. A specific corporation may choose board members based on their knowledge of a specific function of the organization they plan to sit on or because they are in a position to bring something to offer to the board. Or in

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